The market demand for cresol has increased, and the pace of domestic substitution of products has accelerated.

Meta-cresol, also known as meta-methylphenol, is usually a colorless or light yellow liquid at room temperature, with a meta-cresol odor. It is slightly soluble in water and soluble in solvents such as ethanol, ether, and sodium hydroxide. Meta-cresol is an important chemical intermediate, and its production processes include extraction and synthesis. Currently, the main production processes for meta-cresol in China are crude phenol extraction and toluene chlorohydrolysis synthesis.

Meta-cresol belongs to fine chemicals and has a wide range of downstream applications, including pesticides, plastics, pharmaceuticals, antioxidants, and fragrances, with pharmaceuticals and pesticides being the two major application fields for meta-cresol. In 2019, the market demand for meta-cresol in China reached 16,000 tons, a year-on-year increase of 9.6%. As downstream market demand continues to be released, the apparent consumption of meta-cresol in China is also increasing year by year.
According to the "2020-2024 Meta-Cresol Industry Market Deep Research and Investment Prospect Forecast Analysis Report" released by the New Thinking Industry Research Center, the meta-cresol industry has high technical and environmental barriers. Therefore, global meta-cresol production capacity is relatively concentrated, with manufacturers mainly located in the United States, Germany, China, and Japan. Among them, the three companies of Lanxess in Germany, Solvay in the United States, and Mitsui in Japan account for a total of 78%, dominating the global meta-cresol market. At the same time, as global environmental regulations become increasingly strict, the market concentration of meta-cresol will further increase in the future.
With the continuous enhancement of China's independent research and development capabilities, breakthroughs have been made in meta-cresol synthesis and separation technologies. China's meta-cresol industry has gradually achieved large-scale production, and the pace of domestic product substitution has accelerated. Major domestic suppliers include Haihua Technology, Dongying Haiyuan, Anhui Shilian, Chengxing Chemical, and Ark Chemical, among which Haihua Technology is the largest meta-cresol production enterprise in China. In 2020, Haihua Technology was successfully acquired by Huillong Co., Ltd.
In recent years, China's import volume of meta-cresol has remained high, severely affecting the development of domestic enterprises. To promote the healthy development of China's meta-cresol industry, in July 2019, the Ministry of Commerce decided to initiate anti-dumping investigations on imported meta-cresol originating from the United States, the European Union, and Japan. Against this backdrop, China's import volume of meta-cresol significantly decreased in 2019, and domestic production capacity was gradually released. At the same time, affected by the COVID-19 pandemic, imports of meta-cresol were further restricted in 2020. As domestic market demand is released, China's meta-cresol industry will enter a rapid development stage, and the pace of domestic product substitution will further accelerate. Overall, China's meta-cresol industry has broad development space.
Industry analysts from New Thinking indicate that meta-cresol has a wide range of applications, and its market demand is continuously being released, providing ample development space for the industry. The meta-cresol industry has high technical and environmental barriers, leading to a relatively concentrated global production capacity. With continuous breakthroughs in domestic related technologies and increased national support, the development of China's meta-cresol industry will continue to improve, and the pace of domestic product substitution will further accelerate.